Summer Internship Project Report ON "Itr E-Filing": Subject Code:KMBN308
Summer Internship Project Report ON "Itr E-Filing": Subject Code:KMBN308
PROJECT REPORT
ON
“ITR E-FILING”
Session 2020-2022
Subject Code:KMBN308
SUBMITTED BY:
Dated:
CERTIFICATE
I wish him/ her all the best for his/her bright future ahead.
Project Supervisor
Dated:
CERTIFICATE
I wish him/ her all the best for his/her bright future ahead.
Dean-MBA
I Sumit Ranjan, hereby declare that the Internship work title “ITR E-
FILING” completed & submitted in partial fulfilment of the award of
the degree of “Master of Business Administration” by G.L. Bajaj
institute of management and research and the work was carried out
with the help and under guidance of “PRIYA SHUKLA” and staff of
the “VFN GROUPS”.
I further declare this Internship report has not formed the basis for
the award of any other Degree/Diploma of any other
University/Institution.
Date:
INTRODUCTION 8
(Objectives, mission & policies)
COMPANY PROFILE 10
TAX BENEFITS 25
SILENT FEATURES 39
STATEMENT OF PROBLEMS 41
NEED TO STUDY 42
ASSUMPTIONS 43
TYPES OF E-FILING 44
PROCESS OF E-FILING 46
CONCLUSION 59
BIBLIOGRAPHY 60
INTRODUCTION:
E-filing is a system for submitting tax
documents to the income tax department through the internet or
direct connection, usually without the need to submit any paper
documents. Various tax return preparation soft wares with e-
filing capabilities are available as standalone commercial use. E-
file is the term for electronic filing, or sending your ITR from tax
software via the Internet to the tax authority.
INCOME TAX:
The total income from all the above heads of income is calculated
in accordance with the provisions of the Act as they stand on the
first day of April of any assessment year. The Income Tax
Department is responsible for all activities related to the taxation
process.
MISSION:
VISION:
VFN GROUP
TAX ADVISORY
TAX CALCULATORS
What we offer:
Our Philosophy:
o Provide clients with solutions that truly meet their needs and
have high quality products and services, better that anyone else
can provide.
BASIC INFORMATION ABOUT TAX
Taxes in India are of two types, Direct Tax and Indirect Tax.
Direct Tax, like income tax, wealth tax, etc. are those whose burden
falls directly on the taxpayer.
The burden of indirect taxes, like service tax, VAT, etc. can be passed
on to a third party.
Income Tax is all income other than agricultural income levied and
collected by the central government and shared with the states.
According to Income Tax Act 1961, every person, who is an assessee
and whose total income exceeds the maximum exemption limit, shall
be chargeable to the income tax at the rate or rates prescribed in the
finance act. Such income tax shall be paid on the total income of the
previous year in the relevant assessment year.
The total income of an individual is determined on the basis of his
residential status in India.
Income Tax Return" is a term which is often used when we talk about
income tax. It is a way by which we pay this tax. When total annual
income of a person, including all sources, is more than maximum
unchangeable limitation (At present it is Rs. 1,50,000/-) then that
person is liable to pay income tax.
for 182 days during the year or for 60 days during the year and 365
days during the preceding four years. Individuals fulfilling neither of
these conditions are non-residents. (The rules are slightly more
liberal for Indian citizens residing abroad or leaving India for
employment abroad.)
A resident who was not present in India for 730 days during the
preceding seven years or who was non-resident in nine out of ten
preceding yeas I treated as not ordinarily resident. In effect, a
newcomer to India remains not ordinarily resident.
prescribed percentages.
Deferment in the payment of advance tax would result in the payment
of interest.
The income tax basic scheme is explained in brief as:
The income which are pertaining to the 'previous year' is taxed, but
in the 'assessment year.'
Income tax is charged at the rates being fixed by the for the year by
the annual Finance Act. But the liability to pay the tax is based on the
principle 'pay as you earn.'
0-2,50,000 NIL
5,00,000-7,50,000 10%
7,50,000-1,00,000 15%
1,00,000-12,50,000 20%
12,50,000-15,00,000 25%
>15,00,000 30%
Advance Tax
Advance Tax is paid by the income earned during the previous year.
The computing of the liability of advance tax is done by estimating
the 'total income' for the year, calculating the surcharge and taking
into consideration the rebate that will be available. The advance tax
is required to be paid in three instalments.
Schedule of Advance Tax:
On or before 15
A Not less than 30% of advance tax.
September
If the assessee does not pays the advance tax as described above, an
interest of 1% is charged per month for 3 months for the deferment
of advance tax instalment. If the total amount of advance tax is not
paid on or before 15 March, an interest of 1% is charged for one
month.
Further, if the total advance tax paid is less than 90% of the advance
tax payable, the interest at 1% per month is charged for the shortfall
in the advance tax paid for the period commencing from 1 April of
the assessment year and ending on the date of payment or
assessment, whichever is earlier.
Income Tax Rates Across the World
Australia 0% - 48.5%
India 0% - 33%
Malaysia 0% - 29%
Mexico 3% - 32%
Singapore 0% - 22%
UK 0% - 40%
US 10% -35%
TAXABLE HEAD OF INCOME TAX
The total income of a person is divided into five heads, viz., taxable.
Salary Income: -
Business income: -
Rent received
Municipal Valuation
Fair Rent (as determined by the I-T department)
he uses a computer,
he travels to sites in his car,
he has a peon to help him collect payments
He has a maid who comes in daily
part of the society maintenance bills
entertainment expenses incurred..
books and magazines for his professional practice.
As per Section 10(38) of Income Tax Act, 1961 long term capital gains
on shares or securities or mutual funds on which Securities
Transaction Tax (STT) has been deducted and paid, no tax is payable.
STT has been applied on all stock market transactions since October
2004 but does not apply to off-market transactions and company
buybacks; therefore, the higher capital gains taxes will apply to such
transactions where STT is not paid.
All capital gains that are not long term are short term capital gains,
which are taxed as such:
Under section 111A, for shares or mutual funds where STT is paid,
tax rate is 10% From Asst Yr 2005-06 as per Finance Act 2004. For
Asst Yr 2009-10 the tax rate is 15%.
In all other cases, it is part of gross total income and normal tax rate
is applicable.
For companies abroad, the tax liability is 20% of such gains suitably
indexed (since STT is not paid).
Income from Other Sources
This is a residual head, under this head income which does not meet
criteria to go to other heads is taxed. Also there are also some
specific incomes which are to be taxed under this head.
Rebates
Section 80C
Section 10(33)
Dividends from mutual funds are fully exempt from income tax under Section
10(33). Equity funds (schemes that invest 50 per cent of their funds in equity)
are also exempt from dividend tax. This means that unlike companies, they do
not have to pay tax at the rate of 10.2 per cent on the dividend that they
distribute.
Section 88
Upto 31 March 2005, rebates were available on the tax payable under three
sections.
According to the section, 30 per cent or 20 per cent or 15 per cent of the
amount invested in certain schemes (schemes referred in Section 80C) was
available as a rebate on the tax payable.
30 per cent of the amount invested was available as rebate only if the
salary income of the individual was less than Rs. 1 lakh and if it
constituted 90 per cent or more of the assessee's gross total income.
20 per cent of the amount invested was available as rebate if the gross
total income of the individual was less than Rs 1.5 lakh and the case did
not fall under the above mentioned case.
If gross total income was more than Rs. 1.5 lakh but less than Rs 5 lakh
of the individual, a rebate of 15 per cent of the amount invested was
available.
If gross total income was more than Rs 5 lakh of the individual, then
there is no rebate.
Section 88B
Under this section, an individual resident in India and above the age of 65
years was allowed to a maximum rebate of Rs. 20,000 on the tax payable.
Section 88C
Under this section a lady resident in India, aged below 65 years, was allowed a
maximum rebate on the tax payable of Rs 5,000.
Section 89 (1)
This is available to an employee when he receives salary in advance or in arrear
or when in one financial year, he receives salary of more than 12 months or
receives 'profits in lieu of salary' W.e.f. 1.6.89, relief u/s 89(1) can be granted
at the time of TDS by employees of all companies co-operative societies,
universities or institutions as well as govt./public sector undertakings. The
relief should be claimed by the employee in Form No. 10E and should be
worked out as explained in Rule 21A of the Income Tax Rules.
Deductions
Section 80CCC
Any individual who makes a contribution for any annuity plan of the Life
Insurance Corporation of India or any other insurer is eligible for a deduction of
the amount paid or Rs. 10,000, whichever is less. When an individual or his
nominee receives any amount under the following circumstances it will be
taxed as the income of the individual or his nominee, in the year of withdrawal
or the year in which the pension is received:
The contributions to the fund are also made by the Central Government.
Deduction will be available for any contribution which is made by the Central
Government or 10 per cent of the employee's salary, whichever is less.
When the individual or his nominee receives any amount out of the scheme
which meets the following descriptions, it shall be taxed in the hands of the
recipient.
The term 'salary' here includes Dearness Allowance (if considered for
retirement benefits), but it excludes other allowances and perquisites.
The aggregate deduction under the Sections 80C, 80CCC and 80CCD cannot
exceed Rs 1 lakh as whole.
Section 80D
Any Premium which is paid for medical insurance that has been taken on the
health of the assessee, his spouse, dependent parents or dependent children,
is allowed as a deduction, subject to a ceiling of Rs 10,000.
Where any premium is paid for medical insurance for a senior citizen, an
enhanced deduction of Rs 15,000 is allowed. The deduction is available only if
the premium is paid by cheque.
Section 80DD
Deduction under this section is available to an individual who:
If the death of the dependant occurs before that of the assessee, the amount
in the scheme is returned to the individual and is taxable in his hands in the
year that it is received.
An individual should furnish a copy of the issued certificate by the medical
board constituted either by the Central government or a state government in
the prescribed form, along with the return of income of the year for which the
deduction is claimed.
The term 'dependent' here refers to the spouse, children, parents and siblings
of the assessee who are dependant on him for maintenance and who
themselves haven't claimed a deduction for the disability in computing their
total incomes.
This deduction is also available to Hindu Undivided Families (HUF).
Section 80DDB
An individual, resident in India spending any amount for the medical treatment
of specified diseases affecting him or his spouse, children, parents, brothers
and sisters and who are dependant on him, will be eligible for a deduction of
the amount actually spent or Rs 40,000, whichever is less.
Note: - For the complete list of disease specified, refer to Rule 11DD of the
Income Tax Rules.
The individual should furnish a certificate in Form 10-I with the return of
income issued by a specialist working in a government hospital.
Section 80E
The deduction is available for the first year when the interest is paid and for
the subsequent seven years. Up to March 2005, deduction was available for
the repayment of principal and interest aggregating to Rs 40,000 a year.
Section 80U
It is deduction in the case of a person with a disability. An individual who is
suffering from a permanent disability or mental retardation as specified in the
persons with disabilities (Equal Opportunities, Protection of Rights and Full
Participation) Act, 1995 or the National Trust for Welfare of Persons with
Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999,
shall be allowed a deduction of Rs 50,000. In case of severe disability, it is Rs.
75,000.
Section 80G
The deduction is available only for the entity to which donations is made is an
approved charitable institution by the government. A receipt of the institute, in
evidence made, should be attached to the return of income.
Section 80GG
Under this section a non-salaried person or a salaried person, if, not getting
house rent allowance, he/she can claim to the deduction for the rent he pays
for a residential accommodation. The deduction available is least of the
following:
Section 80GGA
An individual, who is not engaged in any business or profession, is
eligible for a deduction of the amount donated to certain institutions
engaged in scientific research, rural development, etc.
Section 80GGC
It is the deduction in respect of contributions given by any person to
political parties. An individual shall be allowed to a deduction of any
amount contributed by him to a political party
SALIENT FEATURES
Faster processing
Everything processes faster when you file online. You won’t have to
read the instructions for each form you’re filing and determine which
number goes in which box. E-filing asks simple and intuitive
questions, makes it clear where to input information and fills out the
proper forms on its own in the back-end.
Electronic signatures even make it so that you don’t have to write
your name a million times in order to file. Simply draw your signature
on your device’s trackpad, and then copy and paste it when indicated
to do so.
Beyond the time that you spend in front of your computer actually
filing your tax returns, completing them online also means that the
information gets passed on the back-end faster, as well. As soon as
you finish your end, that information is sent directly to the IRS
immediately. This eliminates any wait-time for the postal service to
deliver the documents, the IRS mail room to sort them and then
eventually get them to someone who can approve them.
It also means that, if you get a refund, you’ll get that back faster as
well. Not only because the tax return information can be processed
more quickly, but also because features like direct deposit make it so
that your tax refunds are automatically wired to your bank account, as
opposed to being at the mercy of the postal service and having to wait
for a physical check.
2. Security
E-filing involves a tax filer to put their faith in the security of their
internet connection, the software, the hard disk with data, etc.
Still, electronic systems are not short of security breaches.
NEED OF STUDY:
• Property details
• Birth date
• TAN number
• Bank A/c no
2) Click the link eFile Income Tax Return at the top left corner of the home
page
3) Select the Correct Form - There are two income tax forms for salaried
individuals. ITR-1 is for those who derive their income from salary, pension or
interest while ITR-2 is for income from capital gains, house property and other
sources. Those who wish to submit their tax returns manually may download
the pdf forms - External website that opens in a new window from here. These
forms need to be printed, filled by hand and signed before submitting to your
local income tax office.
1 Income from
▪ ▪ ▪ ▪
Salary/Pension
3 Income/Loss from
▪ ▪ ▪
Other Sources
4 Income/Loss from
▪ ▪ ▪
House Property
5 Capital Gains/Loss on
sale of ▪ ▪ ▪
investments/property
6 Partner in a
▪ ▪
partnership Firm
7 Income from
Proprietary ▪
Business/Profession
For Association of Persons (AoP), Body of Individuals (BoI), Local Authority, Companies, Trusts,
Fringe Benefit Tax (FBT) Return
Select appropriate Income Tax ITR-5 ITR-6 ITR-7 ITR-
Return (ITR) Preparation 8
Software
Firms, Companies Trusts Only
AoP, FBT
BoI,
LA
1 Income/Loss from
▪ ▪ ▪
Other Sources
2 Income/Loss from
House Property ▪ ▪ ▪
3 Capital Gains/Loss on
sale of ▪ ▪ ▪
investments/property
4 Income/Loss from
▪ ▪ ▪
Business
ITR-1
ITR-2
ITR-3
ITR-4
ITR-5
This Form can be used a person being a firm, AOP, BOI, artificial
juridical person referred to in section 2(31)(vii), cooperative society
and local authority. However, a person who is required to file the
return of income under section 139(4)(a) or 139(4)(a) or 139(4)(b) or
139(4)(c) or 139(4)(d) shall not use this form.
ITR-6
ITR-7
ITR-8
6) Register - The next step requires you to Register at the Income Tax
website - External website that opens in a new window. Your
registered Permanent Account Number (PAN card) has to be entered
as your username.
8) Upload XML - Browse to select the XML file, which you had
generated and saved in Step 3. Click on the 'Upload' button to upload
the file.
4. The codes for the form number and the status of the assessee
shall be generated electronically by the Department’s server.
11) Verification - If your return is not digitally signed, then you need
to print and fill up the verification part of the acknowledgement cum
verification form (ITR-V). This has to be signed and submitted to the
local Income Tax Office within 15 days to complete the e-filing
process
12) Additional Assistance - In case you require any more help in
filing the paper copy of the return, please contact the Public
Relations Officer at your local Income Tax Office. One may also
phone the Aayakar Sampark Kendra (ASK) call center at 124-2438000
or email at [email protected].
SUMMARY OF LEARNINGS EXPERIENCE
Websites:
www.incometaxindiaefiling.gov.in
www.valueplus.njfundz.com
www.incometaxindia.gov.in
www.legalserviceindia.com
www.finance.indiamart.com